Latest RMBS news
A pair of prime RMBS transactions were priced at the end of last week to heavy demand, with over subscription and tight spreads on both offerings.
European mortgage investors saw more issuance activity this week, driven by a variety of deals from the Netherlands and the UK.
Nationwide Building Society issued a larger than expected €1bn 15 year covered bond at an optically cheap spread this week, through close to one interpretation of fair value. The huge book supported a 10bp tightening through the process, even though some investors withdrew their orders.
Representations and warranties and enforcement frameworks have been weak in non-prime US residential mortgage-backed securities, said Moody’s this week, in contrast to recent prime jumbo transactions.
UK RMBS investors are eagerly eyeing a debut securitization from Optimum Credit, Castell 2017-1 PLC, which is backed wholly by second lien mortgages.
American International Group (AIG) has launched a debut prime jumbo RMBS deal backed by collateral described by Fitch Ratings as among the strongest seen since the financial crisis.
Twin Bridges 2017-1, a UK buy-to-let RMBS deal issued by Fortress subsidiary Paratus AMC, is being marketed to RMBS investors eager for exposure to UK mortgages.
Italian banks are the most likely financiers of their own non-performing loan (NPL portfolio sales, thanks to the structure of the government guarantee scheme, and the difficulty of executing large NPL trades with external finance. Portugal, too, looks set to go down the same road.
US mortgage credit risk transfer and single family rental bond sellers hopped across the pond this week to tap up new European investors for their credit products, with Freddie Mac and Colony American Finance speaking on a panel at Global ABS in Barcelona on Thursday.
Despite quantitative easing measures contributing to persistent shrinking in the size of the European RMBS market, panellists at Global ABS on Wednesday were optimistic that the tapering of central bank funding schemes would see a resurgence of supply, as new non-bank lenders grow market share and banks look to refinance retained deals.
Go to GlobalCapital's Securitization data pages for our dealflow database, plus details of priced European and US CLOs and structured finance bookrunner league tables.
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|Rank||Lead Manager/Arranger||Total Volume $m||No. of Deals||Share % by Volume|
|1||Bank of America Merrill Lynch (BAML)||3,865||12||12.28|
Bookrunners of Global Structured Finance
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|1||Bank of America Merrill Lynch||136,894.46||417||10.71%|
|2||Wells Fargo Securities||131,973.29||354||10.33%|